Hong Kong has recently pushed itself to the forefront of the Asian financial sector by launching six new spot ETFs, three in Bitcoin and three in Ether.

These ETFs, which align with global trends such as the introduction of Spot Bitcoin ETFs in the US, have generated significant interest. As of today, these ETFs have collectively debuted with a market cap of $50 billion, with promises of an impact on both the regional and potentially the cryptocurrency landscapes of mainland China.

In this article we examine the impact of this news on the crypto market and possible future developments.

Trading in Hong Kong Spot Bitcoin ETFs has begun

2024 is proving to be Bitcoin’s year so far. In March, the cryptocurrency reached an all-time high, with its value surpassing $73,000. While corrections have occurred since then, the digital asset has never been as relevant as it is today. This is largely due to the growing relevance of Spot Bitcoin ETFs.

The US Securities and Exchange Commission (SEC) gave the green light for the investment products in January. Shortly afterwards the products started trading, which proved hugely successful. Now that same process is repeating itself as the Spot Bitcoin ETFs in Hong Kong started trading today.

Bron: PayBito

However, Hong Kong stands out in that they have also approved the creation of Spot Ethereum ETFs in the city. That’s something the US hasn’t done yet, with regulatory uncertainty threatening the prospect so far.

The firms launching these crypto ETFs are China Asset Management, Bosera Asset Management and Harvest Global Investments. Of these, China AMC, the Hong Kong subsidiary of China Asset Management, is the largest competing firm. Specifically, they have 15 ETFs in Hong Kong, with over $3.6 billion under management.

Hong Kong ETFs heading for record highs?

Initial expectations put the value of Hong Kong’s Bitcoin and Ethereum spot ETFs at between $200 and $300 million, while the US saw $125 million on its first day. Nevertheless, all three Bitcoin ETFs in Hong Kong gained more than 2% on their debut day, indicating a positive start.

The Bitcoin ETFs offered by China AMC, Harvest, and Bosera rose 2.6% by lunchtime, showing early enthusiasm among investors. However, the ether ETFs remained stable during their first day of trading, indicating divergent market attitudes.

While Hong Kong’s spot cryptocurrency ETFs are new, the region’s previous crypto ETFs have set a precedent. In late 2022, the CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF offered investors futures contracts on crypto markets. This preceded the spot cryptocurrency ETFs and showed early regional interest in crypto investment vehicles.

Impact on the market and future of these ETFs

In a recent X-post, Jason Pizzino connects the debut of the Hong Kong Bitcoin ETF to the 50% level test and price decline on increasing trading volume. This points to short-term market weakness. If Bitcoin closes above $64,600, Pizzino sees a near-term reversal. He warns that sustained consolidation above key resistance levels should negate current weakness and suggest a return to short-term strength.

Despite the excitement surrounding these new ETFs, Hong Kong’s ETF market is smaller than that of the US. According to ETFGI, the U.S. ETF industry had more than 3,400 products with nearly $9 billion in assets as of March 2024. In fact, Hong Kong’s market size lags behind that of China, which reached a significant $238 billion in 2023.

By comparison, Bloomberg data analyst Jack Wang estimates Hong Kong’s ETF market at $50 billion. However, spot cryptocurrency ETFs hold great promise for the expansion and diversification of Hong Kong’s financial markets.

In addition to Bitcoin and Ethereum, for which ETFs have now been launched in Hong Kong, there are also other emerging coins that are gaining more and more attention in the crypto world. These newcomers, which are still in the presale phase, offer investors the opportunity to jump on board early and potentially benefit from their significant growth potential.

99Bitcoins (99BTC)

A promising alternative that uses the Ethereum blockchain is 99Bitcoins (99BTC), a Learn-to-Earn platform with almost 3 million users. The token 99BTC is now available in presale and has already raised over $940,000 for the project.

99Bitcoins could become very popular in the near future due to the influx of new crypto users into the market. These users can learn about crypto, the blockchain, exchanges and more in an interactive way, while earning 99BTC tokens as rewards.

You can buy 99BTC tokens for $0.00103 each in the presale; this price will increase to $0.00104 per token within a week. Using Ethereum smart contracts it is possible to stake 99BTC tokens and earn additional tokens, so 540 million tokens have already been staked. After the presale, the token will be listed and the new Learn-to-Earn platform will go live.

Mega Dice Token (DICE)

Mega Dice is a crypto casino with more than 50,000 players and a monthly stake of more than $50 million. The Mega Dice token is specially designed for use on this casino platform and provides access to benefits such as rakebacks and exclusive games.

In addition, the Mega Dice token can also be used as a staking coin, which pays out high rewards: part of the casino’s winnings is distributed among the token holders. This makes the token attractive to people who normally do not care much about gambling, because they see that the GambleFi sector is growing and Mega Dice is already one of the market leaders.

In a short time, $640,000 has already been raised for Mega Dice, which creates high expectations for the future. Do you also want to benefit from a token that could potentially give you a huge return? Then get in now.

Disclaimer: This article contains insights from independent authors and is not part of BitcoinMagazine.nl’s editorial content. This is not investment advice, please do your own research.

Source: https://bitcoinmagazine.nl/nieuws/hong-kong-crypto-etfs-gaan-live-met-50-mld-market-cap-wat-gaat-crypto-doen



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